An epidemic failures clause (also called an epidemic defects, catastrophic failures, or extended warranty clause) to protect a party (most often, the buyer) in an agreement under which goods are sold (such as a supply of goods or manufacturing agreement) against liabilities associated with recurring product defects. This resource addresses commonly negotiated issues like failure rates and reimbursement requirements for expenses such as field costs, diagnosis, and customer-related expenses. It also addresses procedural details like notice requirements and root cause analysis. This Standard Clause has integrated notes with important explanations and drafting and negotiating tips.